The music streaming service now says it has 75 million users — of
which 20 million are paid subscribers. This has doubled from 10
million a year ago. It also says it has paid out more than $3
billion in royalties to artists.

It's a turbulent time in the music industry. Apple formally
announced Apple Music, its own music streaming service, earlier
this week. It's going to launch on June 30. And Jay Z recently
launched Tidal, his own streaming service that distinguishes
itself through high-quality audio-files and artist involvement.

For now, though, these figures cement Spotify as the clear
industry leader, dominating the streaming market. (It
has previously been reported that Spotify accounts for 86% of
the entire on-demand streaming market.) But once Apple Music
drops this could all change — the Cupertino company is reportedly
aiming to secure a massive 100 million paid subscribers on its
new service.

Although Spotify isn't publicly commenting on its
new round of funding, which values the company at more than
$8.5 billion, it will likely be used to try and fend off this new
challenger. With vast cash reserves —
$178 billion as of February 2014 — Apple is able to launch a
massive consumer push to persuade people to switch. But Spotify
is also struggling to keep the artists themselves on-side.

The industry is going off free music

In recent months, the music industry has started to sour on free,
ad-support music streaming, which now accounts for 55 million of
Spotify's users. In one high-profile spat, Taylor Swift removed
all her new music from Spotify, claiming it fails to properly
value her art. And when Jay Z's Tidal was launched, it was framed
as a way to ensure artists were paid properly for their work.
(However, it has since
run into difficulties.)

Taylor Swift will be
participating in Apple Music, but she opted out of
Spotify.Apple

Meanwhile, Apple Music doesn't have a free tier, and it
does have Taylor Swift — as it subtly showed off at the
Apple Music announcement on Monday. And there have been reports
that Apple is pressuring record labels to have them remove their
music libraries from Spotify and other free streaming services
altogether. EU and US regulators are now investigating
whether this could constitute anti-competitive behaviour —
but it's a clear indicator of how aggressively Apple is targeting
Spotify ahead of its launch.

Spotify is now emphasising how much it is paying to artists and
labels,
writing in a blogpost that it has "paid more than $3 billion
USD in royalties, including more than $300 million in the first
three months of 2015 alone."

Paid subscriptions are up, from 10 million May 2015 to 20 million
in May 2015. And overall users have increased from 40 million to
75 million. This means there's been a small increase in the
proportion of users paying for the service, going up from 25% to
26.7%.

The music company has also broken down how much it says it
typically pays out per artist, and how that figure is projected
to grow over the coming 12 months due to the increased subscriber
figures. It's important to note that not all of this payout will
go to the artist themselves, however.

Here are the figures for "heritage" and "niche/indie" artists
(we've reached out to Spotify to ask what "niche/indie" means in
real terms):

Spotify

And here are figures for the Spotify top 100 artists, and "global
superstars":